Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia

Christian Wiradendi Wolor and Faerozh Madli and Mahmoud Ali Rababah and Hasan Mukhibad and Wong Chee Hoo (2024) Examining the impact of knowledge management use and innovation on business performance of MSMES in the digital age. Case study MSMES in Indonesia. Journal of Sustainability Research, 6 (4). pp. 1-18.

[img] Text
FULL TEXT.pdf
Restricted to Registered users only

Download (270kB) | Request a copy

Abstract

Micro, small, and medium enterprises (MSMEs) play a crucial part in augmenting a nation’s gross domestic product (GDP). Nevertheless, MSMEs continue to encounter obstacles, particularly in utilizing knowledge management to enhance their business performance. Hence, this study aims to investigate the correlation between the utilization of knowledge management for innovation and its influence on the performance of MSMEs, addressing an unexplored area of research. Data was collected through a field survey with a sample of 371 respondents from MSME business actors in Indonesia. The results of this research showed that the implementation of knowledge management does not directly affect the performance of small and medium-sized enterprises (SMEs). However, knowledge management positively influences innovation, which in turn positively affects the performance of these enterprises. The study makes a theoretical addition to the field of science and practice for MSMEs. The theoretical importance of this research lies in understanding that knowledge management alone does not lead to improved performance of SMEs without innovation. This underscores the importance of knowledge management in fostering innovation, which is essential for enhancing business performance amid rapid technological advancements. Practically, the findings suggest that SMEs should begin by identifying critical types of knowledge necessary for their operations and innovations, storing this knowledge systematically in accessible databases

Item Type: Article
Keyword: knowledge management use; innovation; business performance; MSME
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD28-70 Management. Industrial management
H Social Sciences > HF Commerce > HF1-6182 Commerce > HF5001-6182 Business > HF5546-5548.6 Office management
Department: FACULTY > Faculty of Business, Economics and Accounting
Depositing User: ABDULLAH BIN SABUDIN -
Date Deposited: 07 Apr 2025 12:11
Last Modified: 07 Apr 2025 12:11
URI: https://eprints.ums.edu.my/id/eprint/43377

Actions (login required)

View Item View Item